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Home›Tools›Business & E-commerce›Target Price Calculator
FULL PRICING CALCULATOR

Find the price that protects your target margin.

Work backwards from unit cost to a selling price that delivers your chosen gross margin. Include expected fees and discounts before publishing a price.

Target selling priceGross marginPrice after discountFee-aware pricing

Build your target selling price

Calculate your standard target price freely; additional target planning is available for Pro.

✓
Start with cost and desired margin

Cost and target gross margin are required. Optional costs help reflect realistic unit economics.

Use the currency of your real business data.
Optional extra costs per unit, such as fulfillment or packaging.
Optional percentage of sale price, deducted before margin.
Optional percent reduction from displayed list price.
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Free: standard analysis. Pro: targets, scenarios, projects and reports.

Your performance snapshot

Start with the result. Open the details only when you need them.

TARGET SELLING PRICE-

Enter your numbers and calculate to see the result.

READY
Cost before percentage fees -Direct cost + other unit costs
Gross profit per unit -Net sale less variable costs and fees
Achieved margin -Profit / realized selling price
Listed price before discount -Target selling price / (1 - discount)
Fee per unit -Realized price x fee percentage
Profit at planned units -Pro outputPRO
MPPM INTERPRETATION

Enter your numbers and calculate.

MPPM will explain what the result means and what to check next.

WITH PROTurn the result into a plan.
Plan to a targetCompare scenariosBuild reports & projects
PRO PLANNING

Target planning

Work backwards from the outcome you want.

Profit at planned volume-
Sales revenue at planned volume-
Price for chosen profit per unit-
KEEP WORKING WITH THIS RESULTSave this result, then continue in your MPPM workspace.
My MPPM Free can save up to 3 calculations.0 of 3 used
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NEED HELP WITH THE PLAN?

Price your offering around real unit economics.

MPPM can help build pricing, margin and channel-fee scenarios for products and services.

Work with MPPM →
MPPM PRO

Turn every calculation into a repeatable decision workflow.

Free gives you the standard answer. Pro helps you plan targets, compare scenarios, organise recurring work and create decision-ready outputs.

Unlimited savesScenario LabDecision BriefsProjectsReports & exports
Your standard calculator remains available on My MPPM Free.
SCPRO

Scenario Lab

Compare current, conservative and growth cases before committing to a change.

Test the same assumptions across multiple scenarios and see how the result moves.

CurrentBase
ScenarioPlan
Why it mattersAvoid making a decision from one set of assumptions.
DBPRO

Decision Brief

Turn the calculation into a clear next-step recommendation.

MPPM connects the result and supporting metrics into one practical decision summary.

DECISIONSUMMARY
ResultContext
Why it mattersMove from numbers to a management-ready interpretation.
TGPRO

Reverse & Target Planner

Start from the outcome you want, not only the result you have.

Work backwards from a target to the performance, volume or budget required.

Current→
TargetPlan
Why it mattersTranslate goals into measurable operating requirements.
EXPRO

Reports & Export

Move from calculator result to something you can actually share.

Create structured outputs for managers, clients and recurring reviews.

REPORTMPPM
PDFExcel
Why it mattersStop rebuilding the same reporting output manually.
PRPRO

Projects & Connected Calculators

Reuse important assumptions across connected decisions.

Connect this result with the other calculators in the MPPM workflow.

PROJECTConnected
ToolsUpdated
Why it mattersBuild one reusable decision workspace instead of starting over.
HIPRO

Unlimited History & Tracking

See how the decision changes over time.

Keep previous calculations, revisit assumptions and compare performance without deleting old work.

JulAug
SepOct
Why it mattersUseful for recurring reviews, reporting and learning from past decisions.
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READ THE RESULT

A target selling price must cover the economics behind every sale.

Work from unit cost to the actual price received after discounts and platform fees, then check whether that price is acceptable to buyers.

1

Define all relevant unit costs

Include direct product and fulfillment costs that scale with each sale.

2

Choose the margin deliberately

Gross margin is a percentage of realized revenue, not a markup on cost.

3

Account for price reductions

Fees and discounts reduce proceeds, so a higher list price may be required.

Cost / (1 - margin rate)

How does target pricing work?

The price must leave the chosen margin after direct costs and any modeled selling fees. If you plan a discount, the listed price must be adjusted to reach that realized selling price.

Margin and markup differFees reduce contributionDiscounts change realized price
RELATED TOOLS

Keep working through the decision.

Use connected calculators when the next question depends on another part of the economics.

PRACTICAL QUESTIONS

A few things worth knowing before you judge the result.

How is margin different from markup?

Margin divides profit by selling price, while markup divides profit by cost.

Does the calculator include GST or VAT?

No. Prices and costs should use a consistent tax-exclusive basis. Jurisdiction-specific tax is not modeled here.

Why is my list price higher than the target sale price?

A planned discount requires a higher list price to maintain the realized target price.

Is the suggested price commercially achievable?

Not necessarily. Validate willingness to pay, competitive alternatives and demand.

Important: This calculator is for planning and educational use. Real outcomes can differ because of business conditions, accounting treatment, market behavior, taxes, attribution, timing and assumptions not represented here.
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